Andhra Pradesh’s power distribution sector has recorded a notable turnaround in national performance benchmarks, with two state-owned distribution companies improving their rankings in the 14th Annual Integrated Rating and Ranking of Power Distribution Utilities released by the Government of India through the Power Finance Corporation (PFC).

The nationwide assessment evaluates electricity distribution utilities across the country on key parameters including financial sustainability, operational efficiency, governance standards, and service delivery performance. The latest report reflects a clear improvement in Andhra Pradesh’s distribution sector following sustained reform measures. According to the PFC ratings, the Central Power Distribution Company of Andhra Pradesh Limited (APCPDCL)and the Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL) have both secured a two-notch upgrade, moving from ‘C’ grade to ‘B’ grade. The improvement signals strengthened financial health, better operational discipline, and enhanced management practices within the two utilities.

The report highlights significant gains in critical efficiency indicators. Collection efficiency improved sharply from 94.91 percent to 99.26 percent, reflecting tighter billing systems and improved revenue realisation. At the same time, Aggregate Technical and Commercial (AT&C) losses were reduced from nearly 12 percent to 7.9 percent, indicating effective control over power losses, improved network performance, and stronger enforcement mechanisms. With these gains, Andhra Pradesh has emerged among the better-performing states in the country in terms of power distribution efficiency and financial management. Officials attributed the improved national ranking to reform-led interventions undertaken by the state government, including enhanced monitoring of DISCOM operations, deployment of technology-driven billing and collection systems, targeted loss-reduction drives, and structured financial discipline. 

The state government reiterated its commitment to building financially sustainable, consumer-focused, and efficient power utilities, ensuring uninterrupted and quality power supply while maintaining fiscal prudence. Officials said reforms in the sector will continue with a focus on further reducing losses, strengthening infrastructure, and enhancing customer service standards.